Social Security: Future and Implications

Social Security: Future and Implications

Our Social Security system is nothing like a personal account. It is not similar in any way to your checking account, savings account, or personal accounts (mortgage, credit card, etc.). Because in those accounts you can keep track of your money, how much you have, and how much you extract. Most importantly however, the person or company who is holding your account will keep you intact with your money records. Social Security is ultimately the opposite of those types of accounts.

Today, in our society, people collect Social Security checks. Where do they get their money you may ask? We give it to them. The money that we pay into the system gets immediately paid back out to these collectors. The Great Depression is the reason it is like this. Back in 1935, when our society was in an economic crisis Roosevelt signed the Social Security system into law; mainly because almost everybody needed this benefits. Ironically, there was no money to get into the system. Ideally, Roosevelt’s master scheme was that the current workers would put money into the system, and then when that generation retires, the younger generation would provide money for their checks at retirement. Unfortunately, there wasn’t a good amount of money to begin with but nonetheless, the system worked great in 1935. Social Security worked great back then but today our system has problems.

One of the problems in our future heavily relies on our population spike. In 1935 the people paying into the system substantially outweighed than people who were collecting the benefits. Unlike 1935 however, in today’s society the retirement of these millions ‘baby boomers’ are going to substantially outweigh the people who are working; providing the system with money. With America growing rapidly everyday, our Social Security system would have been good and keep the system